Sales – 25,000
Purchases – 2,000
Purchase returns and allowances – 200
Purchase discounts – 200
Freight-in – 100
Beginning inventory – 1,000
Ending inventory – 500
Beginning inventory
Purchases
2,000
Purchase Return
(200)
Purchase Discount
(200)
Net Purchases
1,600
Freight in
100
Cost of goods available for sale
Ending inventory
Cost of goods sold
P1,000
1,700
2,700
(500)
P2,200
Details of business transactions are provided below. Check the result of the operation of the
business if it earns net income or incurs net loss. Prove your answer by preparing multi-step SCI
for the end of the period stated in each transaction.
Malou’s Grocery
Statement of Comprehensive Income
For the month ended, October 31, 2019
Sales
COGS
Gross Profit
General and Administrative
Telephone Expense
(750)
Office Supplies Expense (1,000)
Cleaning Expense
(1,350)
Selling Expense
Rent Expense
(3,200)
Salaries Expense
(3,675)
Net Income
P 70,750
(4,500)
66,250
(3,850)
(6,875)
(P55, 525)